U.S. crude oil rebounded more than 2% on Wednesday, regaining some ground...
U.S. crude oil rebounded more than 2% on Wednesday, regaining some ground after prices closed at the lowest level in nearly three years in the previous session.
“Crude Oil has rallied back aggressively,” Bob Yawger, executive director of energy futures at Mizuho Securities, told clients in a note.
Yawger said the rally could be due to “Hurricane Francine churning up the US oil patch in the Gulf of Mexico” or speculators “jumping trying to pick the bottom again today.”
Here are Wednesday’s energy prices:
West Texas Intermediate October contract: $67.31 per barrel, up $1.56, or 2.37%. Year to date, U.S. crude oil has fallen around 6%.
Brent November contract: $70.61 per barrel, $1.42, or 2.05%. Year to date, the global benchmark has declined about 8.4%.
RBOB Gasoline October contract: $1.8972 per gallon, up 1.45%. Year to date, gasoline has pulled back about 9.8%.
Natural Gas October contract: $2.27 per thousand cubic, up 1.7%. Year to date, gas is down about 9.7%.
The steep sell-off Tuesday came after OPEC lowered its demand growth outlook for the second time in two months, and as China crude oil imports slow in 2024. Eight OPEC+ members are also expected to increase production in December.
Francine Strengthened to a Category 2, Surprising Forecasters as Its Winds Jumped to 100 Miles per Hour Ahead of Landfall.
Hurricane Francine strengthened suddenly and unexpectedly...
Hurricane Francine strengthened suddenly and unexpectedly on Wednesday afternoon, just ahead of a projected landfall southwest of New Orleans. The storm lashed southern Louisiana with heavy rain and wind, setting off tornado warnings across a region whose residents have been scarred by powerful disasters.
Officials urged people who had not evacuated to stay inside for their safety as the storm brought strong winds, surging seas and the risk of flash flooding. The governor of Louisiana warned that some in the state could be without power “for some time” after Francine moves through.
U.S. stocks pull off huge comeback to reverse early post-CPI selloff
All three major stock indexes scored large intraday comebacks...
All three major stock indexes scored large intraday comebacks on Wednesday, helped by dip-buyers, overcoming earlier weakness seen following the release of the August consumer-price index.
Based on preliminary data, the Dow Jones Industrial Average finished up by 124.75 points, or 0.3%, at 40,861.71. It had been down by as much as 1.8% at its session low.
The S&P 500 closed up 58.61 points, or 1.1%, at 5,554.13 after falling as much as 1.6% during the day.
The Nasdaq Composite ended up by 369.65 points, or 2.2%, at 17,395.53. It had declined as much as 1.4% earlier on Wednesday.
According to Dow Jones Market Data, the Dow's and S&P 500's comebacks rank as the largest since Oct. 13, 2022. The small-cap Russell 2000, which finished up by 0.3% at around 2,104, also saw its biggest intraday comeback in almost two years.
The Nasdaq's comeback was the biggest since March 15, 2023, and Wednesday's rise represents the index's best CPI-day performance since Nov. 14.
Dow slides nearly 600 points as traders pare bets on large Fed rate cut
The Dow Jones Industrial Average was tumbling on Wednesday...
The Dow Jones Industrial Average was tumbling on Wednesday morning, down nearly 600 points, or 1.4% as investors digested a hotter-than-expected August core inflation reading that may derail the chance of a jumbo interest-rate cut by the Federal Reserve next week.
Fed-funds futures traders saw an 85% chance that the Fed will lower its rate by a quarter percentage point to a target range of 5% to 5.25% in September. The chance of a half percentage point move fell to 15% from 34% a day ago, according to the CME FedWatch Tool.
APA Divests $950 Million in Non-core Permian Basin Assets
APA Corp. has agreed to sell non-core producing Permian Basin assets...
APA Corp. has agreed to sell non-core producing Permian Basin assets to an undisclosed buyer for $950 million before customary closing adjustments.
APA said on Sept. 10 that it is selling Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf assets, with estimated net production averaging 21,000 boe/d, of which approximately 57% is oil.
APA is engaged in a divestiture campaign after buying Callon Petroleum for $4.5 billion on April 1. As part of the deal, APA took out term loans totaling about $2 billion. According to the company, it owes an additional $4.8 billion in debt.
